The high today stalled near the low from Tuesday
The GBPUSD as moved back to the downside in the process has retested the old 2021 low at 1.34498. That was the swing low going back to January 11.
The price of the GBPUSD moved below that level during trading yesterday on its way to a low of 1.3411. The low price today could only reach 1.34149. The inability to extend the decline led to some short covering in the European/US morning session.
The US session high spiked at 1.35167. That was just short of the Tuesday low of 1.35188.
With the old 2001 low at 1.34498 being retested, the buyers and sellers are digging in. If the price should move below, the bias barometer would tilt back to the downside and we could expect a retest of the lows of 1.3411.
Conversely if the level holds, the corrective lows today would be higher and you could argue that the dip buyers were taking a stand (first against the low from yesterday and second, against the old swing low from January 2021).
Having said that, there is still a lots of work to be done. Getting above the Tuesday high at 1.35188, the 38.2% retracement of the move down from the September 23 high at 1.35405, the swing high from yesterday’s trade at 1.35538, and finally the falling 100 hour moving average at 1.35752 are all targets upside targets that would need to be broken to increase the bullish bias.